ZCash (ZEC) has recently performed poorly. It is actually one of the biggest losers in the cryptocurrency bear market. When you look at its price chart, it's like a coin without energy. It's like ZCash is forgotten by investors, even if other cryptocurrencies start to bounce. So what happened to ZCash? Is it dead, or is there a chance to rebound? To answer these questions, you first need to understand why zcash coin price usd is in today's position.
ASIC's huge impact on ZCash
ZCash has performed well in the market before introducing ASIC mining. But the serious centralization brought about by ASIC mining has hit Zcash, a small currency. We can learn from the most famous currency bitcoin in cryptocurrency that bitmain controls most of the ASIC's mining activities. So investors lost interest in Zcash.
Another point is that the ASIC-centric features contradict Zcash's privacy-focused selling points. Because privacy coins should be scattered enough. This is why Monera (XMR) changes its code to resist ASIC mining. When ZCash is controlled by Bitmain or any other ASIC miner, ZCash's privacy market is really not very useful
Zcash Community Vote: Refused to Over-Defend Against ASIC
In May of this year, hardware manufacturer Bitmain announced the first Zcash (ZEC) ASIC miner. Some people worry that ASIC will lead to the centralization of mining, so maintaining ASIC resistance is the key to decentralization. In a vote organized by the Zcash Foundation, the Zcash community voted against its prioritization of ASIC resistance in the agreement. This governance workshop invited 64 members from the Zcash community to speak on behalf of other community members. The consensus reached at the meeting was that they did not want to devote more resources to maintaining ASIC resistance, but rather to make mining more efficient and reduce barriers to entry, in order to ensure a greater degree of decentralization of the network. .
ZCash is also affected by macro factors related to the privacy market. A month ago, Japan ordered an encryption exchange to cancel the privacy coin. This conveys the government's dissatisfaction with privacy coins and may hit them in the future. This is why the privacy coin market has been very quiet recently. There are other problems with privacy coins like ZCash.
When you consider all of these factors, it is easy to conclude that ZCash (ZEC) is nearing death. However, it still has a reputation in the market and it may rebound if it wants to change the direction of mining it takes.
